Asked by Tempest Hansen on Jul 15, 2024
Verified
Which of the following would be most likely to suggest reducing the money supply as a way to end a prolonged inflation?
A) Monetarist
B) Keynesian
C) Economic behaviorists
D) Classical economist
E) Supply-sider
Money Supply
The total amount of monetary assets available in an economy at a given time.
Prolonged Inflation
An extended period of time during which prices in an economy consistently rise, diminishing purchasing power.
Monetarist
An economist who believes that variations in the money supply have major influences on national output in the short run and the price level over longer periods.
- Understand the basic principles of monetarism and its approach to managing the economy.
Verified Answer
RK
Reinhard KoechJul 19, 2024
Final Answer :
A
Explanation :
Monetarists believe that controlling the money supply is key to stabilizing the economy and reducing inflation. They often advocate for reducing the money supply as a means of reigning in inflation.
Learning Objectives
- Understand the basic principles of monetarism and its approach to managing the economy.